FAQs on Goods and Services Tax Registration

FAQs on Goods and Services Tax Registration

Can I have one goods and services tax number for 2 businesses in the same state?

Yes, if both businesses fall under the same Permanent account number & are not categorized as distinct business verticals, they can operate under a single goods and services tax number. However, if they are distinct verticals, you have the option to obtain separate registrations.

Can I apply twice for Goods and Services Tax registration?

No, you cannot obtain 2 Goods and Services Tax registrations for the same business vertical in a single state. But In case GST taxpayer have business operates in multiple states or has distinct verticals, you can obtain separate Goods and Services Tax Registrations.

Can a company have 2 Goods and Services Tax Numbers in different states?

Yes, a company must have different GST numbers for each state in which it operates. Under the Goods and Services Tax Act, these are considered distinct persons, & Separate registrations are required for compliance.

How do I register for Goods and Services Tax in multiple states?

If you conduct business in multiple states, you must apply for a separate Goods and Services Tax Network for each state. The GST Registration can be completed via the official Goods and Services Tax portal, requiring specific documentation for each state.

What is threshold limit for Goods and Services Tax Registration in Two different states?

• • For goods suppliers: The Goods and Services Tax threshold is INR 40 lakh (INR 20 lakh for special category states).
  • For service providers: Goods and Services Tax registration is mandatory if turnover exceeds ₹20 lakh (INR 10 lakh for special category states).
  • Special category states include northeastern & hilly areas, where lower limits apply.

Can a single person have multiple Goods and Services Tax Network’s?

Yes, a single person can have multiple GSTINs, particularly if they operate businesses in multiple states or run different business vertically. Each state & vertical requiring separate registration will have its own GSTIN.

Can I register two different businesses under 1 Goods and Services Tax number with different trade names?

Yes, if both businesses are within the same state and operate under same legal entity, they can be registered under a single Goods and Services Tax Network. This is known as a vertical business under Goods and Services Tax.

What are the penalties for Goods and Services Tax eligible businesses that fail to register?

Any business that is required to register for Goods and Services Tax but fails to do so will be liable for a penalty of INR 10,000 or an amount equal to the tax evaded, whichever is higher.

What are the penalties for providing false information during Goods and Services Tax Registration?

If a business furnishes false information during Goods and Services Tax Registration:

• • A fine of INR 10,000 will be imposed for the first offense.
  • For continued offenses, a fine of INR 100 per day will be levied, up to a maximum of INR 25,000.